Gold is keeping weaker despite the more subdued risk mood today
Gold is a little lower on the day as price now sits near its 200-hour MA (blue line) after having attempted to break near-term resistance around $1,563 earlier today.
Buyers failed in that attempt as the narrow trading range around $1,540 to $1,563 continues to define price action in gold for almost two weeks now - effectively leaving traders in limbo in trying to search for a meaningful move in the commodity.
There is a bit of a narrowing wedge starting to be developed now so perhaps that could lend towards a technical move down the road but unless traders can point towards some key catalyst for a break, the rangebound trading may yet continue.
On the month itself, gold is up by 2.5% following 3.0% gains in December - which still reaffirms the seasonal pattern leading up to the Chinese New Year period.
However, the climb up and then down from $1,600 shows the real potential for gold to move in the event of the right kind of developments. As such, traders need not be too hasty for the time being. Remember, there's always going to be another trade.
